Short Answer
In July 2020, Deutsche Bank agreed to pay $150 million to New York State’s Department of Financial Services (DFS) for failing to properly monitor Jeffrey Epstein’s accounts and the accounts of other clients. It was the first regulatory action against a financial institution for its relationship with Epstein.
In Detail
When Epstein Banked at Deutsche Bank
After JPMorgan dropped Epstein as a client in 2013, Deutsche Bank took on his business. Despite his status as a registered sex offender and the public record of his criminal case, the bank processed hundreds of transactions in his accounts totaling millions of dollars, including payments to named co-conspirators and settlements with alleged victims.
What the DFS Investigation Found
The DFS investigation found that Deutsche Bank had processed approximately $7.2 million in suspicious transactions tied to Epstein between 2013 and 2018 — after his sex offender conviction. These included dozens of payments to women with Russian names with no clear business purpose, payments to co-conspirators identified in the 2008 NPA, and structured cash withdrawals of up to $80,000 per month.
Internal bank processes flagged concerns about the relationship but compliance reviews recommended continuing the business relationship nonetheless.
The $150 Million Fine
The DFS consent order required Deutsche Bank to pay $150 million and implement enhanced compliance procedures. The order found the bank had failed to implement adequate monitoring and had allowed Epstein’s accounts to be managed in a way that ignored obvious red flags.
Broader Compliance Failure
The DFS action was part of a broader finding of systemic compliance failures at Deutsche Bank, which also separately paid fines related to its handling of accounts linked to the Trump Organization and others during the same period.